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Companies are taking action on diversity and inclusion with unprecedented urgency and transparency. They’ve pledged to support Black Lives Matter, they’re reckoning with public outing of internal discriminatory practices on social media and pledging to do better, and brands such as Land O’Lakes, Aunt Jemima and The Washington Redskins (now the Washington Football Team) have stripped imagery linked to racism.

Change is happening. This is both a good and welcomed shift that has raised an interesting question for boards and executives: Should we tie bonuses to diversity and inclusion goals?

That’s a question organizations are examining now as they consider awarding bonuses to top executives who hit diversity and inclusion goals. Attaching a bonus to any goal is a signal to your employees, shareholders and customers that this is important to the organization. Yet, is diversity something that we really should reward monetarily when the hope is that people will just do the right thing? 

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